Wed March 30, 2016
I will have the link to the WSJ article later this morning as it has not appeared in our library database yet.
HSBC bank paid a $1.9 B fine to the Justice Dept in 2012 to settle allegations it failed to spot laundered proceeds of drug trafficking in Mexico. It also failed to flag transaction with countries subject o economic sanctions.
Reading the article I wondered why HSBC would run the risk of doing business in Mexico where obviously the laundering question is at the highest risk. By the end of the article, we learn that indeed HSBC is shutting down much of its Mexico business.
HSBC has now hired 9,000 compliance officer. No wonder job prospects look good for accountants.
But, my ethical question is, is it fair for the Justice Dept to fine HSBC such a huge amount given the difficulty of what is required? All that did was deny honest Mexicans the advantage of HSBC services. Is this really just an extortion racket the Justice Dept is running? Hey nice bank you got here, be a shame if something happened to it...
Consider this list of fines paid by banks to Dept of Justice.
And in deed HSBC cold lose its license to do business in the US.
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